The Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, has today officially launched Uganda’s Biofuels Blending Programme (BBP), marking a significant milestone in the country’s energy transition journey.
Nankabirwa, who was speaking during a presser at Uganda Media Centre, said this initiative will begin by blending Petroleum Motor Spirit (PMS), commonly known as petrol, with 5% fuel-grade ethanol (E5).
“This step reinforces our continued commitment to strengthening energy security, advancing environmental sustainability, decarbonising the transport sector, and empowering farmers and agro-processing businesses by creating alternative market opportunities, and ultimately to support the socio-economic transformation,” Nankabirwa said.
Vision for a Sustainable Energy Future
Nankabirwa revealed that this programme is not just about introducing a new fuel type but also aligns with President Yoweri Museveni’s vision for a sustainable, integrated, and self-reliant economy.
“The programme is grounded in Uganda’s robust legal and policy frameworks, including Vision 2040, the National Energy Policy 2023, the Biofuels Act 2020, and the Biofuels (Licensing) Regulations 2022, which provide a clear roadmap for developing a sustainable biofuels industry in Uganda,” the Minister stated.
Strategic Objectives of the Biofuels Programme
According to Nankabirwa, the overriding objectives of the Biofuels Blending Programme include;
Enhancing Energy Security
She revealed that the government intends to achieve this by reducing reliance on imported fossil fuels, strengthening the country’s energy independence and mitigating global price volatility and supply disruptions.
Promoting Environmental Stewardship
Nankabirwa explained that biofuels, particularly ethanol derived from renewable sources, offer a cleaner alternative that significantly reduces greenhouse gas emissions and improves air quality, supporting our national climate action goals.
Driving Economic Development
The Minister said that the programme will stabilise markets for local farmers and promote value addition to crops like maize, cassava and sugarcane, creating jobs across the entire value chain from farming to processing, logistics, and blending or cooking. It will also promote secondary industries such as those for animal feeds.
Boost Investment and Innovation
Nankabirwa revealed that the government is creating opportunities for investment in the sector, noting that several partners and investors have already expressed interest in the biofuels industry.
Export Potential
She observed that with Uganda’s agricultural potential, the government expects the biofuels sector to supply regional and international markets.
Notably, there are opportunities to blend aviation fuel, in markets such as the European Union, where regulations are already requiring a 2% ethanol blend in aviation fuel as of 2025, expected to rise to 70% by 2050.
Operational Readiness
She revealed that the Ministry of Energy has made significant progress to ensure readiness for the Biofuels Blending programme. Some of these include the following.
Initial Blending Ratio
This will be done following the Biofuels (Licensing) Regulations, 2022. The Minister said it will commence with a 5% ethanol blending ratio (E5) of PMS (Petrol). This phased approach will increase up to the 20% target set by the Biofuels Act 2020.
Incubation Period
She said that today’s launch of the BBP will be followed by a six-month incubation period, not exceeding December 31, 2025, during which the industry is expected to achieve full operational readiness as the Ministry continues sensitising the different stakeholders.
Local Ethanol Sourcing
Nankabirwa reiterated that the government is committed to sourcing locally produced ethanol, supporting Uganda’s “Buy Uganda, Build Uganda” initiative.
The Ministry has since licensed producers with an annual ethanol capacity of 78.5 million litres, including Pro Industries, Kakira Sugar Ltd, G.M. Sugar Ltd, Hoima Sugar Ltd, Bukona Agro-Processors and others. An additional 110 million litres will be added in the coming years.
Strategic Blending Facilities
She revealed that already, four facilities have been licensed at key border entry points to ensure a blended fuel supply. They include the following;
Modern Energy Ltd (Busia Border Point)
This facility handles 49 million litres of PMS per month, operational by mid-July 2025.
Bukona Agro Processors Ltd (Malaba Border Point)
This one handles an estimated 48 million litres and is estimated to be operational by the end of July 2025.
Afro-Kai Ltd (Mutukula Border Point)
The facility can handle 6-8 million litres and is to be operational by end of August 2025.
Lake Victoria Logistics (Kawuku, Entebbe)
It will handle 10 million litres per month.
Nankabirwa noted that these facilities will together process around 110 million litres of Petroleum Motor Spirit (PMS) annually, all of which is expected to be
blended with ethanol, at 5% per volume.
She revealed that by doing all the above, the government intends to achieve a fair pricing policy for fuel, implement tax exemptions on clean energy suppliers and ensure quality assurance.
She, however, cautioned that the success of this programme relies on the collective efforts of all stakeholders.
“We call upon Oil Marketing Companies to accelerate their readiness during the incubation period and urge all Ugandans to embrace this cleaner, locally sourced energy alternative, which will also improve combustion efficiency and engine performance for your automobiles,” she concluded.
The Minister emphasised that the commencement of the Biofuels Blending Programme signifies the government’s commitment to a sustainable, energy-secure future for Uganda.